The Markel-Sarkozy press conference managed to leave today's high at 1201.50 in the emini S&P 500, which we notice is just below yesterday's high at 1201.75.

The decline this afternoon from 1201.50 to 1177.50 has created a larger "M" or double-top formation, which is putting intense pressure on key support around the 1180/78 area.

If the e-SPU breaks and sustain below today's intraday low at 1177.50, then the "M" top formation will be confirmed and should trigger downside follow-through towards 1155-1146.50 next.

Conversely, should the e-SPU manage to climb all the way back to 1200-1202 and break out to new highs, my earlier scenario for a run at 1220/25 will be back on the front burner.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.